Investments in Equity Securities On March 15, 2022, Boston Company acquired 6,000 shares of Richfield Corporation common stock at $44 per share as a long-term investment. Richfield has 60,000 shares of outstanding voting common stock. Boston does not own any other stocks. Boston Company made an irrevocable option to measure the equity investment as fair value through other comprehensive income. The following additional events occurred during the fiscal year ended December 31, 2022: Dec. 1 Boston received a cash dividend of $2.60 per share from Richfield Corporation. 31 Richfield Corporation announced earnings for the year of $150,000. 31 Richfield common stock had a closing market price of $41 per share. prepare 1) journal entries. 2) Statement of comprehensive income 3) Balance sheet
Investments in Equity Securities On March 15, 2022, Boston Company acquired 6,000 shares of Richfield Corporation common stock at $44 per share as a long-term investment. Richfield has 60,000 shares of outstanding voting common stock. Boston does not own any other stocks. Boston Company made an irrevocable option to measure the equity investment as fair value through other comprehensive income. The following additional events occurred during the fiscal year ended December 31, 2022: Dec. 1 Boston received a cash dividend of $2.60 per share from Richfield Corporation. 31 Richfield Corporation announced earnings for the year of $150,000. 31 Richfield common stock had a closing market price of $41 per share. prepare 1) journal entries. 2) Statement of comprehensive income 3) Balance sheet
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 26E
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Investments in Equity Securities
On March 15, 2022, Boston Company acquired 6,000 shares of Richfield Corporation common stock at $44 per share as a long-term investment. Richfield has 60,000 shares of outstanding voting common stock. Boston does not own any other stocks. Boston Company made an irrevocable option to measure the equity investment as fair value through other comprehensive income. The following additional events occurred during the fiscal year ended December 31, 2022:
| Dec. | 1 | Boston received a cash dividend of $2.60 per share from Richfield Corporation. | |
| 31 | Richfield Corporation announced earnings for the year of $150,000. | ||
| 31 | Richfield common stock had a closing market price of $41 per share. |
prepare 1)
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